Geely Automobile Holdings Ltd. has encountered a drawback on its plan to list on Shanghai’s Star board as regulators question if it is high tech enough, according to Bloomberg.
- Geely’s planned listing comes as the China Securities Regulatory Commission is considering tightening rules for maiden share sales at the Star board. It wants to ensure firms have technology credentials and south financial health before firms are allowed to list.
- Geely already received listing approval in September. It believes it will get a higher valuation than a second listing on the main board in Shanghai or Shenzhen. Its parent Zhejiang Geely Holding Group Co. is listed in Hong Kong.
- The company is investing $5 billion in a new electric-car battery plant and launching a new EV brand. It is also forging partnerships with Baidu Inc., Foxconn Technology Group, and Tencent Holdings Ltd.
- The carmaker reported a 32% drop in net income to 5.53 billion yuan in 2020, missing management and market expectations after sales were hit by the coronavirus pandemic.